A payment gateway is an eCommerce service that’s used to authorize and process credit card and debit payments for online businesses and brick-and-mortar stores. This makes a transaction possible by communicating information about it. If you have an online business, you need a way to accept payment.
What is a payment gateway? Why you need it?
A payment processing functionality allows businesses to accept credit cards or any other payment form of payment online. It connects the merchants with the bank’s processing platform. All gateways used to require merchants to apply for a merchant account, a special bank account that allowed directly receipt of credit card payment processing.
If we look at merchant services you require. You’ll need a merchant account in order to accept payments online. A merchant account is not the same thing as a business bank account; the two are separate entities. For one, you can’t directly access your merchant account. Payments are deposited and temporarily held there when customers make an online payment through a gateway. The bank will then process those payments in batches—rather than one at a time—and move the funds from your merchant account to your regular bank account all at once. Typically, payments are moved from one account to the other within a few days.
Because they’re an all-in-one solution, modern payment gateways are typically easier to set up—indeed, they can be set up in less than an hour—but you pay the price in higher per-transaction fees
Without a payment gateway integration, the customers won’t be able to pay for the services or products they are buying online. It is necessary to accept electronic payments for any business niche.
Choosing a payment gateway provider
Here are some things to consider prior to deciding on a provider.
Payment processing is complicated process, as it includes several financial institutions or organizations. Like any service, a payment gateway involves a fee for using third-party tools to process and authorize the transaction. Usually, you will have a gateway setup fee, monthly gateway fee, merchant account setup, and a fee for each transaction that’s been processed. It’s crucial to compare how the business model coincides with the payment provider, or gateway’s fee structure.
Consider merchant account options:
A merchant account is a type of bank account that allows a business to accept credit card and debit card payments. Basically it facilitates debit and credit card payment processing. Whether the agreement is between the merchant and the acquiring bank, or through a payment aggregator, like an ISO it acts as a contractual agreement that also requires the merchant to adhere to operating regulations established by the card associations, including payment security mandates. Not every merchant services account is designed in the same way. Always seek for merchant services you require the most. The terms depend on the payment processing needs of your unique business, the type of business you run, and the size of your business, among other considerations. Always make a payment gateway list and then you will have a lots of options available.
Make sure a vendor supports necessary payment methods and multiple-currencies:
Always make sure your payment gateway supports all the necessary payment methods that are popular in your specific industry, region, or country. Multi- currency support means that shoppers can pay for your products or services using the currency they are already using. Usually, shoppers in other nations are forced to pay entirely in USD or Euros instead of the currency of their country of residence. This experience can be annoying for many online shoppers and may even discourage them from completing their transaction.
Make sure your product type is permitted by the provider:
Usually, there are two types of products considered by providers: digital and physical. So, always before subscribing to a provider, make sure it permits your type of a product. Most payment gateway providers either have a demo on their website, or will be happy to show you a demo if you ask.
Growing a business is exciting. Looking at sales come pouring in is a shot of energy that helps you keep going even when things get tough. How to seek for a best payment gateway. Always choose the payment gateway services that will work best with your company. Take your own time to do the research and read the reviews. Speak to other online business owners what gateway they’ve used. iPayTotal is a hassle free, full-featured, easy-to-integrate payment gateway for online merchants looking for a flexible and customizable payment the solution for growing businesses Unlike most other payment gateways, iPayTotal includes recurring billing for subscription, recurrent payments, and donations as standard features, providing merchants with a range of tools, such as coupons, flexible billing periods, multiple subscription plans,free/paid trials and pro rataplans, at no extra cost.